DALLAS, July 11, 2017 /PRNewswire/ --
Puration, Inc. (USOTC: PURA) today announced a $1.2 million sales contract. The sales contract comes in conjunction with PURA's recently announced letter of intent (LOI) agreement to acquire a twenty-five greenhouse grow operation. The sales contract calls for a wholesale purchase of all PURA's production from the 25-greenhouse operation up to $100,000 per month. The acquisition under LOI is expected to close before the end of this month and include expansion terms that could lead to the addition of another 400 irrigated greenhouse pads ready for buildout.
Potential for expansion to $16 million in annual sales and beyond
The $1.2 million sales contract will be fulfilled from the production coming from the operation of the 25 greenhouses currently under LOI. The operations under LOI have historically grown and sold traditional greenhouse flowers for use in residential landscaping. The original nursery operation had a long history that includes contracts with Lowes (NYSE: LOW) and Home Depot (NYSE: HD). Puration plans to use proceeds from the traditional nursery operation to expand the operation into its full 400 greenhouse potential. The operation is located in regions of East Texas well known for nursery operations. Texas has recently legalized medical marijuana and is pending the issuance of its first licenses. Puration intends to transition to marijuana growing overtime in conjunction with the legalization process. In the meantime, Puration anticipates the traditional nursery operations have the potential to expand to as high as $16 million in annual sales. Medical Marijuana sales can be substantially higher. Puration plans to develop its own proprietary strains of Hemp and Marijuana within the acquired greenhouse operation in order to enhance the Company's existing extraction business.
Puration's U.S. Patented Cannabis Extraction process
Puration has a U.S. Patented Cannabis Extraction process licensed from NCM Biotech. The license of the process to Puration is the first and only license NCM Biotech has executed. R&D with NCM Biotech's patented process has demonstrated a high potential for bringing FDA approved pharmaceutical products to market for the treatment of multiple neurological disorders and cancer. NCM Biotech's medical advisory team includes John N. Gaitanis, M.D., Director of Child Neurology at Tufts Medical Center/Floating Hospital for Children; Lloyd R. Saberski, M.D., Associate Professor of Anesthesiology and Chronic Pain Management, Yale University, and John McMichael, Ph.D., President and CEO Beech Tree Labs.
Puration's NCM Biotech Extractions compared to GW Pharmaceutical (NASDAQ: GWPH)
"I have received doctor feedback from more than one of our research initiatives that extracts coming from NCM Biotech's patented process are superior in purity and quality to any other available cannabis extracts," said Frederick Ferri, CEO and Founder of NCM Biotech. "Some feedback has specifically indicated that a number of our candidate pharmaceutical products under development have a greater efficacy potential than GW Pharmaceutical products and candidate products."
Learn More About PURA: purationinc.com.
Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease.
SOURCE Puration, Inc.